A title defect is really anything that could make the title unmarketable. Examples of title defects include, but are not limited to:
- A previous mortgage or lien against the property
- A party claiming the boundary of the property is different from what the buyer understood
- Parties claiming rights to easements over or under the property
A holder of a defective title may have a title claim against the title insurance company, the title agent, or the seller and other parties connected to the sale of the property.
Title Insurance Company
Title insurance is intended to cover title defects. The title policy must be reviewed immediately to determine the procedure for submitting a timely claim to the company.
The titleholder may have a negligent search and examination claim against the title agent. The fee paid to the title agent to perform the search and examination of the title is independent of the premium paid to the title insurer. The title agent is a separate and distinct entity from the title insurer and is oftentimes an attorney or independent title agency.
Seller and Other Parties
Claims against the seller include fraudulent misrepresentation, negligent misrepresentation, breach of warranty of title in the deed and breaches of statements in an affidavit that there are no liens or parties in possession. The titleholder may have a negligent survey claim against the surveyor if the survey is inaccurate or incomplete.
Consult the Title Defects and Claims Attorneys at Lieser Skaff Alexander
Title defects jeopardize marketability of property. Our experienced attorneys have helped numerous clients file claims to successfully cure many types of title defects. If you discover a defect in the title after you have closed on your property, we can help you take the proper course of action to protect your rights.